Newmont will gain a 28% stake in Maverix, plus warrants for an additional 10 million common shares.
The portfolio of 54 royalties, which includes a 1% NSR royalty on TMAC Resources' Hope Bay mine in Canada, will add to Maverix's existing 27 royalties and streams.
Maverix has estimated a cash flow of C$6-8 million (US$4.6-$6.2 million) in 2019 from the predominantly gold royalty portfolio, with the potential to increase to more than $20 million (US$15 million) annually.
Under a planned shareholder agreement, Newmont will be entitled to a seat on Maverix's board and have the right to maintain its ownership stake in future financings.
Newmont becomes the third globally recognised miner to become a shareholder, Maverix president and CEO Dan O'Flaherty pointed out.
Pan American Silver and Gold Fields will hold 26% and 20% of Maverix respectively once the transaction closes, which is expected this quarter.
Maverix last month reported revenue of C$19.5 million (US$15 million) for 2017 in its first full year of operation and had forecast an increase to $26-30 million (US$20-$23 million) for 2018, due to an expected 40-50% increase in attributable gold-equivalent production.
Newmont strategic development executive vice president Randy Engel said the strategic partnership and equity interest generated value for both companies' shareholders.
Newmont's shares closed down 1.29% but are up 3.76% year-to-date, valuing it at US$20.77 billion.
Maverix shares rose 13.79% but are down 10.8% so far this year, capitalising it at C$254.2 million.
